Valero urges stockholders to reject mini tender offer

A mini-tender offer is an offer for less than 5 percent of a company’s outstanding shares, according to the Securities and Exchange Commission.

TRC made the offer to buy as much as 5 million shares of Valero common stock for $16.55 a share, an offer that’s 4.2 percent below the company’s closing price on Tuesday, when Valero go the offer.

“If the offer were to expire today, Valero stockholders who tendered their shares would lose money compared to the amount they could make by selling their shares on the open market,” the company said in a statement.

The SEC has issued an investor advisory on mini-tender offers that you can read here. It notes that mini-tender offers “have been increasingly used to catch investors off guard,” as many investors “may end up selling their securities at below-market prices.”